Hi,
If a contractor whose office is situated in Delhi sends his employee to work in Karnataka, will the employee be liable to pay professional tax if they work for a full year in a company in Karnataka? If so, is it obligatory for the employer in Delhi to deduct the professional tax from the employee's salary and pay it to the Karnataka Government authorities?
From India, Gurgaon
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1If a contractor whose office is situated in Delhi sends his employee to work in Karnataka, will the employee be liable to pay professional tax if they work for a full year in a company in Karnataka? If so, is it obligatory for the employer in Delhi to deduct the professional tax from the employee's salary and pay it to the Karnataka Government authorities?
From India, Gurgaon
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Hi Krish,
Hope you have found an answer to your question by now. 😊 Actually, I am facing a similar situation. Can you please help me with this? I would like to know whether our company, which is based out of Delhi, will be required to register under the Professional Tax Act in Karnataka even if we do not have any office or branch there, and there are only two employees who would be working from home in Bangalore.
Regards,
Nidhi
From India, Gurgaon
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Hope you have found an answer to your question by now. 😊 Actually, I am facing a similar situation. Can you please help me with this? I would like to know whether our company, which is based out of Delhi, will be required to register under the Professional Tax Act in Karnataka even if we do not have any office or branch there, and there are only two employees who would be working from home in Bangalore.
Regards,
Nidhi
From India, Gurgaon
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If the period of employment is more than 120 days in a year, as per the rates prescribed in the schedule, sec 3(2), compulsory registration/enrollment under the Act is required under sec 5 within 30 days of becoming liable to pay tax.
I hope this will help. In case you need a copy of the Act, let me know.
Regards,
Krish
From India, Gurgaon
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I hope this will help. In case you need a copy of the Act, let me know.
Regards,
Krish
From India, Gurgaon
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Hi Nidhi,
The act is applicable when employment is in the state of Karnataka. In your case, if the appointment formality is done in Delhi, then you are not covered as an employer. Because employment is in Delhi, and the person working there is just fulfilling their contractual duties. You will be covered only when you have an office in Karnataka. For example, a person employed by X company outsourced to B company is employed by X, not by B. Too much interpretation is involved, please check the meaning of employed in Karnataka.
Krish
From India, Gurgaon
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The act is applicable when employment is in the state of Karnataka. In your case, if the appointment formality is done in Delhi, then you are not covered as an employer. Because employment is in Delhi, and the person working there is just fulfilling their contractual duties. You will be covered only when you have an office in Karnataka. For example, a person employed by X company outsourced to B company is employed by X, not by B. Too much interpretation is involved, please check the meaning of employed in Karnataka.
Krish
From India, Gurgaon
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If you go by explanation inserted in definition of person, it also gives the idea that a branch or office should be situated in karnataka.
From India, Gurgaon
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From India, Gurgaon
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MP Professional Tax Amedment Act 2012 (Return).pdf